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Practice Questions
Test your understanding with targeted questions related to the topic.
Question 1
Easy
What formula is used to calculate depreciation?
💡 Hint: Think about how much the asset loses value over time.
Question 2
Easy
How do you calculate the book value at the end of the first year?
💡 Hint: You want to reduce the purchase price by the depreciation amount.
Practice 4 more questions and get performance evaluation
Interactive Quizzes
Engage in quick quizzes to reinforce what you've learned and check your comprehension.
Question 1
What is the formula for calculating the book value at the end of the first year?
💡 Hint: Consider what happens to the asset's value over time.
Question 2
True or False: The economic life of a machine is the period during which it is less costly to maintain than to replace.
💡 Hint: Focus on the relationship between cost and lifespan.
Solve 2 more questions and get performance evaluation
Challenge Problems
Push your limits with challenges.
Question 1
If a loader with a purchase price of 30 lakh has a depreciation rate of 30%, calculate its book value after 2 years.
💡 Hint: Remember to recalculate the book value after each year based on the current value.
Question 2
Using the maximum profit approach, if the estimated annual profit of a current loader is 7,90,000, and the proposed loader offers a maximum average annual profit of 8,50,000, should the company replace the loader?
💡 Hint: Compare profits to assess if replacement is needed.
Challenge and get performance evaluation